Maharashtra may hike ready reckoner rates in April

PUNE: Those planning to buy a property in the state in the next financial year may be in for a rude shock.

The state government may announce increase in ready reckoner (RR) rates in April to tide over the “low collection of stamp duty”, sources from the government told TOI.

Interestingly, the hike will be enforced even after vehement opposition from district level committees and developers. “There is opposition considering the current slowdown in the construction sector. However, the government doesn’t have much of an option but to hike the rates to fill its coffers,” the sources said.

The RR rates are market values of a property determined by the government for payment of stamp duty in the course of property transactions.

Last year, the RR rates were “moderately” hiked to 7% that the government had maintained was “the lowest to the corresponding rates in the last six years”.

“However this year, after demonetisation and overall lull in the realty sector, the stamp duty collections have gone down. Considering this scenario, it is expected that the government will have to increase the RR rates,” the source added.

Presently, the registration department has been able to collect Rs 17,500 crore (74%) against a target of Rs 23,548 crore for this year. The department has managed to register 18.2 lakh documents this year, so far.

Realtor Rohit Gera, vice-president of Credai (Pune), said a hike in RR rates would impact the consumer in a big way. “I think it is clearly a challenging time as far as the real estate sector is considered. Sales are slow and it is quiet evident in revenue collection by the state government,’’ Gera said.